Consulting   Market Research
Research as needed for projects On going primary survey (research) effort
General Knowledge over a wide range Expertise in subject, industry or technology area
High cost for last minute research, slow project turnaround High cost for on going research, quick project turnaround
Project based Product based
Typically high margins Typically medium to low margins
Deliverables generally built on secondary, public sources or internal estimates Deliverables generally based on primary survey effort, hard data with independent results
Company reputation and expertise key Analyst expertise and reputation key
Ability to compile and assess available information of high value to governments and company boards Market research based projects of high value for manufacturers, industry association, and investors, across industries
Need for company visibility via group papers and speaking Need for analyst visibility via publishing externally, and speaking
The company is the brand The analyst is a company brand
In general, consultants enjoy the ability to work on a wide variety of subjects, do not like being focused on one thing In general, analysts prefer to build on expertise in one area and do not like losing focus
Advantages for Consulting with Market Research: Advantages for Market Research with Consulting:
Quicker turnaround on projects Ability to focus on product development
Provides an original product that can be marketed and which can leverage higher margin business Participation in higher margin projects
Market Visibility Larger base of clients outside area of expertise
Higher volume Higher volume
Takes advantage of analyst reputation in market Potentially provides analyst with higher visibility
Disadvantages with Market Research: Disadvantages with Consulting:
In some cases, lower margins Misinterpretation of data and analysis by consultants
Consultant loses control of analysis to some degree Difficulty keeping up “wall” around confidential sources of data
Acceptance of Analyst expertise by consultants places consultants in the position of not being the expert Unrealistic expectations from internal clients
Selling market research products may take the place of higher volume projects with the result that it is better to lose the sale than sell the report., Unwillingness of consultants to sell market research products, lowering volume
Vulnerable position if analyst leaves as the analyst is a brand Potential loss of individual recognition
Analyst may be out of step with group dynamics Potential corruption of data and analysis
Outside firms may steal data and reproduce Outside firms may steal data and reproduce